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If I"lock" with a broker, and then change my mind and go with another broker, what kind of fees would I need to pay upfront?

Is there anything protecting my rights to go with a better rate offer once it gets to this stage? Thank you in advance for your help. by nancy.huber259 from New Creek, West Virginia. Dec 1st 2015 Reply


Scott Kinne (Skinne)
#29 ranked lender in Virginia - 71 contributions

You are NEVER obligated to a specific lender/broker until you sign the financing papers at settlement! Your only risk is that most lenders will require you pay for the Appraisal and Credit Report upfront, which will probably be ~$500 total . If you switch lenders before the appraiser has gone out to the property then you can cancel and should not be charged, so that lender should refund that portion of your payment back to you. Otherwise, appraisals cannot be transferred unless it's a VA or FHA loan. I am licensed in West VA so please call if I can assist you. Scott Kinne - VP. - First Heritage Mortgage - NMLS# 182351 - phone 703-293-6146.

Dec 1st 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

First, you need to think about what is right and what is wrong.. For you lender to be in a position to "Lock" your loan, he's has already committed hours of work, both he and his staff... including all the processes behind the scene that you never see... all of this is done typically without charging you upfront but with the anticipation that you will close a loan with them.. I never discourage shopping, but you should do it before you commit to a broker. It's just wrong! That all being said, if you decide to move your loan, then it could cost you.. typically, about half the lenders will accept a transferred appraisal.. but this is only if the appraisal has no issues.. if the new lender has to go back to the appraiser for an update, clarification, or change, then that transferred appraisal is no good, and you would need to pay for another one.. Also, if your buying a home, it's highly unlikely you would close on time if in the middle you decided to switch lenders.. Also, certain lenders have a "One-Time" float down policy.. if rates improve more than 1/4%, then they can do a one-time re-re-lock at no charge.. As I said before, you should shop, but the ethical thing to do would be to tell your mortgage broker that your still shopping so he can stop working on your file until you decide to commit.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Dec 1st 2015
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